SEC is proposing to amend the regulations on the capital requirements for asset management companies that manage property funds or infrastructure funds, trust managers and trustees of REITs or infrastructure trusts to ensure that they have adequate and suitably high levels of capital. Under the proposed amendments, the initial capital requirement or the minimum amount of owner’s equity must be maintained at 10 million baht for trust managers of REITs or infrastructure trusts and 20 million baht for asset management companies  that manage property funds or infrastructure funds. Additional capital has to be maintained to ensure continuity of business operations.

To cover potential liability risks arising from professional negligence, asset management companies are required to maintain additional capital at a rate commensurate with the size and degree of business operations. Both asset management companies and trust managers must comply with relevant regulations governing their respective businesses in case they fail to maintain capital adequacy as required.

SEC has proposed a grace period of two years for existing asset management companies and trust managers in operation before the effective date of the amended regulations to comply with the new rules.

The consultation paper can be found on SEC website : www.sec.or.th/hearing. Stakeholders and interested parties are welcome to give comments and suggestions via the SEC website, or facsimile at 0-263-6231 or email: sittiwat@sec.or.th or nuchanat@sec.or.th or kittinee@sec.or.th. The public hearing ends on 28 December 2018.

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Note: The consultation paper is available at https://capital.sec.or.th/webapp/phs/upload/phs1543378775hearing_55_2561.pdf